Zane Benefits Publishes New Information on How to Control Health Benefits Costs

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How Businesses Can Control the Cost of Health Benefits With a Defined Contribution Approach

Today, Zane Benefits, the online alternative to group health insurance, published new information on how to control health benefits costs.

According to Zane Benefits’ website, in today's shifting small business health insurance market, controlling the cost of health benefits while keeping employees happy can be a major challenge for business owners.

In the past, group health insurance was clearly the best way to provide quality health insurance to employees. But for many businesses today group health insurance costs too much.

So, it's no surprise that many small and medium-sized businesses are transitioning away from group health insurance and choosing to offer health benefits with a pure defined contribution approach. With defined contribution, the business controls all health benefits costs while providing the same (or better) health insurance coverage to employees.

A defined contribution health benefits approach allows a business to:

  • Set any amount to contribute to employees' health care.
  • Give employees tax-free health care allowances through a Health Reimbursement Arrangement (HRA).
  • Reimburse employees on payroll for approved premiums and out-of-pocket medical expenses.
  • Control financial liability, and let employees shop for policies that best meet their individual health needs.

Here are four ways to control costs with a defined contribution approach:

1. The business defines the budget by setting any contribution amount toward employees’ health care. Because there are no annual renewal increases or minimum contribution amounts, the business literally controls all health benefits costs.

2. Employees purchase individual health insurance policies (or incur an eligible medical expenses) and submit expenses for reimbursement. Your business reimburses employees directly on payroll tax-free.

3. The business only reimburses employees for eligible premiums and medical expenses, up to the amount of their health care allowance.

4. At the end of the year, the business decides what happens to employees’ unused allowances (i.e. do they carry-over to the next year?).

These four aspects of a defined contribution approach gives financial control and predictability, while creating health benefits that make employees feel valued, loyal, and happy.

Click here to read the full article.

About Zane Benefits

Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangements (HRAs) and defined contribution health care. The flagship software provides a 100% paperless administration experience to small businesses and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.

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Christina Merhar
Zane Benefits
800-391-9209 6725
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